As you are aware from previous correspondence, consultation on the lease car and car allowance scheme took place between 20 October 2011 and 5 December 2011. In line with ACAS best practice, the consultation involved a Joint Working Party representing views of employees and the organisation.
Following the end of the consultation period the Joint Working Party agreed that employees who currently receive Essential Car User Allowance will receive a one-off payment to compensate for a contractual change which removes the entitlement to opt for a Lease Car. The payment is to be £750 for full time employees and will be pro rata for part time staff. This payment will be made in your March salary and is subject to tax and National Insurance.
The Joint Working Party also agreed that Lease Cars would no longer be available to new starters and established a business mileage threshold to determine eligibility for a new Essential Car User Allowance scheme. From 01 April 2012 Essential Car User Allowance will only be paid to employees who occupy a post that is considered to travel 3,500 business miles or more every twelve months. This will be decided by the mileage that the previous post holder attained and/or reasonable justification as to why the new post holder will require ECUA and estimate mileage, for example – will need to travel to a number of different places.